· According to the National Association of Realtors, March sales of existing home sales fell 2.0% m/m to 4.930M. The drop reversed most of February's unrevised 2.9% increase and it was as expected.

· The downward momentum behind last year's sales declines continued to look like it's flattened out. During the last three months sales were about even with the yearend '07 level.

· Despite a 2.6% one month rise in median home prices, the trend still is lower. The gain followed three consecutive months of decline and the three month average of home prices fell to a new cycle low, 12.6% below the high last August.

· Sales of existing single family homes in March fell 2.7% to 4.350M and reversed all of February's gain.

· By region, home sales in the Midwest fell a hard 6.5% (-15.9% y/y) while sales in the South also fell by 3.5% (-20.0% y/y). In the Northeast sales rose for the second consecutive month following three months of decline. Sales in the West rose a modest 2.2% after two months of decline.

· The number of unsold homes on the market rose a modest 1.0% (6.6% y/y). At the current sales rate the inventory still amounts to a 9.9 months supply which is barely down from last year's peak. For single family homes there is a 9.5 months supply at the current sales rate and for condos and co-ops there is a 12.8 months supply.

· New Monetary Policy Tools? from the Federal Reserve Bank of St. Louis can be found here.